New figures on the grocery market in the 12 weeks to 6 December have revealed that total grocery market sales rose by only 0.1% compared to the same period last year as retailers battle for sales during the vital Christmas period.

GENERAL MERCHANDISE

Sainsbury's stands out in subdued UK grocery market

15 December 2015 | by The Retail Bulletin

New figures on the grocery market in the 12 weeks to 6 December have revealed that total grocery market sales rose by only 0.1% compared to the same period last year as retailers battle for sales during the vital Christmas period.

The figures from Kantar Worldpanel show the lowest growth since June and the ninth consecutive month where sales have increased by less than 1%.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “Although slow growth means a distinct lack of seasonal cheer for the market, the news is more positive for consumers looking to save this Christmas. Last year customers spent an average of £71.33 on their big Christmas shop but with falling prices set to continue, shoppers are likely to enjoy a cheaper Christmas this year. All supermarkets are cutting prices, particularly on staples like eggs and butter, with the cost of everyday groceries falling by 1.9% this month.”

Looking at individual retailers, Sainsbury’s increased its sales by 1.2% with growth across its convenience, supermarket and online businesses. This meant its market share rose to 16.7%.

McKevitt added: “Consumers continue to be drawn to the retailer’s ‘Taste the Difference’ range, and with sales of champagne and sparkling wine up by a quarter it seems clear that the grocer is successfully tapping into demand for premium goods. Sainsbury’s recent run of success predates its popular ‘Mog’s Christmas Calamity’ advert, with the retailer now having grown ahead of the market for three months in a row.”

Meanwhile, Tesco and Asda both saw their sales fall by 3.4% in the period to take their market shares to 28% and 16.2% respectively. Revenues at Morrisons fell by 2% which meant its market share was 11%.

Aldi and Lidl remained at the combined 10% share of the market they achieved last month with respective sales growth of 15.4% and 17.9% year-on-year.

The Co-operative achieved sales growth of 2% and an increased market share of 6.2% while Waitrose grew its revenues by 2.7% and now holds a market share of 5.1%.

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